InsuranceAgencyTools

Insurance Commission Calculator

Calculate commission on new business and renewal premium, including bonuses and the agency split.

Last reviewed

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Free · No sign-up · Runs in your browser

Insurance compensation has more moving parts than most producers can hold in their head: a new business rate, a lower renewal rate, a production bonus that may or may not apply, and an agency split taken from the total.

This calculator runs the sequence and separates the components, so the effect of writing more new business against retaining more renewals is visible rather than assumed.

Your numbers

Results update as you type. Nothing is sent anywhere.

Result

Net commission

$58,065

Monthly average

$4,839

Gross commission
$79,000
From new business
$27,000
From renewals
$52,000
Bonus
$3,950
Agency share
$24,885
Blended commission rate
11.29%

Commission schedules differ by carrier, line of business and contract. Use the rates in your own agreement rather than the defaults.

This is a compensation calculation, not a projection of business you will write.

How to use the insurance commission calculator

  1. Enter the new business premium you have written and the commission rate that applies to it.
  2. Enter the renewal premium on the book and its own commission rate.
  3. Add any production bonus percentage.
  4. Enter the split you actually keep, then read the net figure and the blended rate.

What people use this for

  • Modelling compensation before accepting a contract or a split change.
  • Seeing how much of your income comes from renewals rather than new business.
  • Comparing two agency contracts with different splits and bonus structures.
  • Setting a production target that reaches a specific income figure.

Worked examples

Every figure below is produced by running this calculator against the example inputs, so the numbers always match the tool.

A producer with an established book

$180,000 of new business at 15%, $520,000 of renewal premium at 10%, a 5% bonus and a 70% split.

Net commission
$58,065
From renewals
$52,000
Blended commission rate
11.29%

The same producer with no renewal book

Only new business, which is what the first year of a career looks like.

Net commission
$19,845
From new business
$27,000

Renewals are the business

New business commission is higher per dollar, which makes it feel like the important number. It is not. A renewal book pays a lower rate on a much larger premium base, every year, without further acquisition cost.

Once a book matures, renewal commission typically dominates total compensation. That is why retention is the metric that decides a producer’s income over a career, and why the renewal rate in a contract deserves as much attention as the new business rate.

Splits and what they buy

A split is the share retained after the agency takes its portion. What the agency provides for that share - leads, service staff, technology, errors-and-omissions cover, office space - varies enormously, and comparing splits without comparing what they include is meaningless.

A 50% split with supplied leads and full service support can pay better than an 80% split where the producer funds everything. Model the net rather than the headline.

Methodology and assumptions

What this calculator does, and what it deliberately does not do.

  • New business and renewal commission are calculated separately at their own rates, then the bonus is applied to the total, then the split.
  • Commission schedules differ by carrier, line and contract. Use the rates in your own agreement.
  • This is a compensation calculation, not a projection of business you will write.
  • All figures are estimates produced from the values you enter. This site has no rate feed and no carrier data, so it cannot quote or price a policy.
  • Nothing you type is transmitted or stored - the calculation runs entirely inside your browser.

This calculator provides an estimate based on the information you enter. Actual insurance premiums, coverage, eligibility and pricing vary by provider and individual circumstances.

This website is not an insurance company, an insurance agency or a licensed broker. It does not sell insurance, does not provide insurance quotes, and is not authorised to give advice about which policy you should buy.

No result produced here is an offer of insurance or a guarantee of coverage. Only a licensed insurer or agent, working from your verified details, can quote or bind a policy.

Frequently asked questions

Why is the renewal rate lower than the new business rate?

Carriers pay more for acquisition because it costs more. Servicing an existing policy costs the agency less, so the ongoing rate is lower.

Are commission rates negotiable?

Carrier schedules generally are not at the individual producer level. Agency splits frequently are, particularly as production grows.

What is a production bonus?

An additional percentage paid for hitting volume, growth or loss-ratio targets. Terms vary considerably and some are contingent on results you do not fully control.

Does this include contingent or profit-sharing commission?

No. Those depend on loss ratios across a book and are usually paid to the agency rather than the producer. Model them separately.

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